Incomes of Physicians an Economist Is Analyzing the Incomes of Physicians (General

question 131

Essay

Incomes of Physicians
An economist is analyzing the incomes of physicians (general practitioners,surgeons,and psychiatrists).He realizes that an important factor is the number of years of experience.However,he wants to know if there are differences among the three professional groups.He takes a random sample of 125 physicians and estimates the multiple regression model y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε,where y = annual income (in $1,000),x₁ = years of experience,x₂ = 1 if physician and 0 if not,and x₃ = 1 if surgeons and 0 if not.The computer output is shown below. THE REGRESSION EQUATION IS y = 71.65 + 2.07x₁ + 10.16x₂− 7.44x₃ S = 42.6 R−Sq = 30.9% ANALYSIS OF VARIANCE ​ ​
-{Incomes of Physicians Narrative} Is there enough evidence at the 1% significant level to conclude that general practitioners earn more on average than psychiatrists?

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Definitions:

Complementary Therapy

Alternative forms of healthcare practices that are used alongside traditional medical treatments to enhance wellbeing.

Hypnotherapist

A professional trained in hypnotherapy, using guided relaxation and intense concentration to help individuals reach a heightened state of awareness or trance-like state.

Myofascial Release

A physical therapy technique aimed at releasing muscular tightness and shortness by manipulating the myofascial connective tissue.

Shiatsu Massage

A form of therapeutic bodywork from Japan that uses localized pressure with fingers, thumbs, or palms in a rhythmic sequence on acupuncture meridians.